The quarterly dividend was increased from 11 cents to 13 cents per share on July 18, 2014.

Total loans increased $222.7 million during the quarter and $256.7 million during the first six months of 2014 to $1.3 billion as of June 30, 2014.

Commercial loans increased $119.6 million during the quarter and $143.0 million during the first six months of 2014 to $648.2 million as of June 30, 2014.

Second quarter 2014 net income was $4.8 million or $.50 diluted earnings per share, an increase of $1.4 million over the previous quarter.

Excluding costs related to the acquisition of SCB Bancorp, Inc. of $900,000, net income for the second quarter of 2014 was $5.4 million or $.56 diluted earnings per share.

Net income for the first six months of 2014 was $8.2 million or $.88 diluted earnings per share.

Excluding costs related to the acquisition of SCB Bancorp, Inc. of $1.2 million, net income for the first six months of 2014 was $9.0 million or $.96 diluted earnings per share.

Net Interest Margin, excluding the impact of acquisitions (“core net interest margin”), was 3.52% for the second quarter of 2014 compared to 3.38% in the previous quarter.

Return on average assets was 0.98% for the second quarter of 2014 and 0.89% for the first six months of 2014.

Return on average common equity was 11.95% for the second quarter of 2014 and 10.40% for the first six months of 2014.

Non-performing loans to total loans as of June 30, 2014 were 1.41% compared to 1.70% as of December 31, 2013 and 2.27% as of June 30, 2013.

Craig M. Dwight, Chairman and CEO, commented: “I am pleased to announce Horizon’s second quarter 2014 results, which reflect our continued growth story and a positive contribution from our four key revenue streams – business banking, retail banking, residential mortgage lending and wealth and investment management. Horizon’s assets surpassed the $2.0 billion mark during the quarter through a combination of strategic assets acquired in the SCB Bancorp, Inc. (“Summit”) transaction and organic loan growth, most notably in the commercial loan portfolio. There was also a significant pickup in residential lending activity compared to the previous quarter. Additionally, Horizon’s core net interest margin, excluding interest income from acquisition-related purchase accounting adjustments, increased to 3.52% for the three months ended June 30, 2014 from 3.38% in the previous quarter.”

“The loan growth we achieved during the quarter was both organic and strategic in its composition,” Dwight explained. The following tables present the amounts and growth rates of loans by various markets and product types:

Dwight continued, “Horizon’s loan growth speaks well of our talented lending team and the emphasis placed on increasing our presence in larger markets with significant growth potential. Additionally, we have achieved this growth without sacrificing our disciplined credit culture, resulting in a stable level of non-performing assets and low levels of net loan charge-offs for the first six months of 2014.”

Dwight noted the Bank continues to build core deposits to help maintain low cost funding. Core deposit accounts, excluding the Summit acquisition, grew $27.8 million or 2.6% during the second quarter of 2014 and $95.5 million or 9.4% during the first six months of 2014. Dwight explained, “We are very pleased with our net interest margin results for the second quarter, which can be attributed to the increase in higher yielding assets and low cost funding sources. Horizon’s core net interest margin increased over the first quarter of 2014 during a period in which industry-wide margin pressure persists.”

Net income for the second quarter of 2014 was $4.8 million or $.50 diluted earnings per share compared to $5.7 million or $.62 diluted earnings per share in the second quarter of 2013. The decrease in net income from the previous year reflects the decline in net interest margin, lower non-interest income due to a decline in gain on sale of mortgage loans and an increase in non-interest expenses primarily due to an increase in salaries and employee benefits, transaction expenses related to the Summit acquisition and an increase in expenses due to overall company growth. Additionally, the decrease in diluted earnings per share reflects the shares issued to Summit shareholders as part of the transaction. Excluding transaction expenses related to the Summit acquisition of $900,000, net income would have been $5.4 million or $.56 diluted earnings per share for the second quarter of 2014.

Net income for the six months ended June 30, 2014 was $8.2 million or $.88 diluted earnings per share compared to $11.0 million or $1.20 diluted earnings per share for the six months ended June 30, 2013. Excluding transaction expenses related to the Summit acquisition of $1.2 million, net income would have been $9.0 million or $.96 diluted earnings per share for the first six months of 2014.

Horizon’s net interest margin was 3.78% during the second quarter of 2014, up from 3.48% for the prior quarter and down from 4.21% for same period of 2013. The increase in net interest margin compared to the previous quarter was primarily due to an increase in higher yielding average loan balances, specifically commercial loans and mortgage warehouse loans, as well as an increase in interest income from acquisition-related purchase accounting adjustments. The decrease in net interest margin compared to the same period of the prior year was primarily due to lower yields on new loans and repricing earning assets and a decrease in interest income from acquisition-related purchase accounting adjustments. Excluding purchase accounting adjustments related to the 2012 Heartland Bancshares, Inc. and the Summit acquisitions, the margin would have been 3.52% for the three-month period ending June 30, 2014 compared to 3.38% for the previous quarter and 3.61% for the same period of 2013. Interest income from acquisition-related purchase accounting adjustments was $1.2 million, $389,000 and $2.4 million for the three months ended June 30, 2014, March 31, 2014 and June 30, 2013, respectively.

Horizon’s net interest margin was 3.62% for the six months ending June 30, 2014, down from 4.17% for same period of 2013. Excluding interest income from acquisition-related purchase accounting adjustments, the margin would have been 3.43% for the six months ending June 30, 2014 compared to 3.66% for same period of 2013. Interest income from acquisition-related purchase accounting adjustments was $1.6 million and $4.2 million for the six months ended June 30, 2014 and June 30, 2013, respectively.

Residential mortgage lending activity during the second quarter of 2014 generated $2.5 million in income from the gain on sale of mortgage loans, an increase of $1.1 million from the previous quarter and a decrease of $270,000 from the second quarter of 2013. Total origination volume in the second quarter of 2014, including loans placed into portfolio, totaled $82.5 million, representing an increase of 56.8% from the previous quarter of $52.6 million and a decrease of 29.9% from the second quarter of 2013 of $117.7 million.

Purchase money mortgage originations during the second quarter of 2014 represented 77.5% of total originations compared to 70.6% of originations during the previous quarter and 66.0% during the second quarter of 2013.

Lending Activity

Total loans increased $256.7 million from December 31, 2013 to $1.3 billion at June 30, 2014 as mortgage warehouse loans increased by $42.7 million, residential mortgage loans increased by $49.6 million and consumer loans increased by $17.3 million. Commercial loans increased $143.0 million or 28.3% from $505.2 million at December 31, 2013 to $648.2 million at June 30, 2014.

Total loan balances in the Kalamazoo and Indianapolis markets continued to grow during the second quarter of 2014 to $127.1 million and $101.7 million, respectively, as of June 30, 2014. Kalamazoo’s aggregate loan balances increased $6.7 million or 5.5% and Indianapolis’ aggregate loan balances increased $19.3 million or 23.4% during the second quarter of 2014. Additionally, Lansing market loans were $132.8 million as of June 30, 2014, an increase of $8.8 million or 7.1% from $124.1 million as of the Summit transaction completion date on April 3, 2014.

The provision for loan losses was $339,000 for the second quarter and the first six months of 2014, which was $390,000 lower than the provision for the second quarter of 2013 and $2.5 million lower than the provision for the first six months of 2013. The lower provision for loan losses in the second quarter and for the first six months of 2014 compared to the same periods of 2013 was due to the improvement of non-performing and substandard loans.

The ratio of the allowance for loan losses to total loans decreased to 1.18% as of June 30, 2014 from 1.49% as of December 31, 2013 due to the increase in total loans from both organic growth and the

Summit acquisition. The decrease in allowance for loan losses from $16.0 million as of December 31, 2013 to $15.7 million as of June 30, 2014 was due to net charge-offs of $670,000 during the first six months of 2014, partially offset by a provision for loan losses of $339,000 during the same period.

Non-performing loans totaled $18.7 million as of June 30, 2014, up from $18.3 million as of December 31, 2013. Compared to December 31, 2013, non-performing commercial loans and real estate loans increased by $772,000 and $527,000, respectively, partially offset by a decrease of $898,000 in non-performing consumer loans. The increase in non-performing loans was primarily due to the addition of non-performing loans as a result of the Summit acquisition in the amount of $859,000 as of June 30, 2014. As a percentage of total loans, non-performing loans were 1.41% at June 30, 2014, down 29 basis points from 1.70% at December 31, 2013.

At June 30, 2014, loans acquired in the Summit acquisition represented $859,000 in non-performing, $2.9 million in substandard and $463,000 in delinquent loans.

Expense Management

Total non-interest expense was $2.1 million higher in the first six months of 2014 compared to the first six months of 2013 and $1.9 million higher in the second quarter of 2014 compared to the previous quarter. The increase in non-interest expense was primarily related to the Summit acquisition expenses in the amount of $1.2 million for the first six months of 2014 and $900,000 for the second quarter of 2014 as well as overall company growth.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to a financial measure determined by methods other than in accordance with GAAP. Specifically, we have included a non-GAAP financial measure of the net interest margin excluding the impact of acquisitions. Horizon believes that this non-GAAP financial measure is helpful to investors and provides a greater understanding of our business without giving effect to the purchase accounting impacts of acquisitions, although this measure is not necessarily comparable to similar measures that may be presented by other companies and it should not be considered in isolation or as a substitute for the related GAAP measure.

About Horizon

Horizon Bancorp is a locally owned, independent, commercial bank holding company serving Northern and Central Indiana and Southwest and Central Michigan through its commercial banking subsidiary Horizon Bank, NA. Horizon also offers mortgage-banking services throughout the Midwest. Horizon Bancorp may be reached online at www.horizonbank.com. Its common stock is traded on the NASDAQ Global Market under the symbol HBNC.

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon. For these statements, Horizon claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Horizon’s reports filed with the Securities and Exchange Commission, including those described in its Form 10-K. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.